South Korea has made a push for its firms to win a bigger slice of investment in Australia’s resources sector as both countries commit to clinching a free-trade deal within months.

South Korea’s Foreign Minister, Yun Byung-Se, called for the Australian government to pay “special attention to facilitate Korean companies’ participation in large-scale resource development in Australia" following a meeting with Foreign Affairs Minister
Julie Bishop
, according to a foreign ministry statement.

It is understood Korea is concerned Australian federal and state governments’ regulatory approval processes are streamlined to facilitate investment by Korean firms.

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Ms Bishop said Australia had the resources and energy supplies to boost Korea’s heavy engineering and high-technology industries and Australian consumers purchased the cars, mobile phones and other goods Korea produced.

“Korean investment in the Roy Hill project is exceedingly welcome . . . a large iron ore project that we feel sure will be of great benefit to both our countries," Ms Bishop said.

“And in the dynamic LNG sector, where Australia is selling LNG to Korea, Korean companies are building the infrastructure for that to happen . . . Korean [transport] ships, LNG platforms and the like," she said.

FTA deal given the hurry-up

Following a meeting with Mr Yun, Ms Bishop said she had charged Australian “trade negotiators with the task of ­concluding a [free-trade deal] as soon as possible" and Mr Yun had reciprocated. “That’s the message that’s been delivered to officials on both sides," Ms Bishop said.

“Our expectation is that the Australia-Korea FTA will be the next to be concluded," she said.

Ms Bishop said the most sensitive issue in the talks was South Korea’s insistence on an investor state dispute settlement clause which would enable Korean companies to legally challenge Australian government decisions, but Australia was assessing such requests on a a case-by-case basis.

The two sides are understood to be much closer on issues such as foreign investment thresholds, automotive tariffs and agriculture.

South Korea and Australia have been in talks since 2007 but failed to meet a deadline to reach agreement by the end of 2012 despite commitments given by former leaders Lee Myung-bak and Julia Gillard.

South Korea is Australia’s fourth-largest trading partner. A joint feasibility study found Australia’s gross domestic product would grow by $23 billion to 2020 and South Korea’s by $28 billion with a comprehensive deal.

Prime Minister
Tony Abbott
has said he wants all three North Asia free-trade deals including Japan and China sealed within 12 months.

But an internal row over foreign investment continues to simmer within the federal Coalition.

Treasurer
Joe Hockey
hinted in the United States last week that the Coalition might be willing to lift the investment threshold which triggers scrutiny of foreign investment to $1 billion from the current $248 million to secure a free-trade deal with China.